Phoenix Student Loan Debt Lawyer
With the rising costs of education, student loans are becoming harder to pay off. For Phoenix area residents struggling in this down economy, student loans are generally difficult to discharge in bankruptcy. In order to have a case for discharging your student loans, there must be an "undue hardship". Undue hardship in the bankruptcy context is very different from what normal people consider to be undue hardship. For instance, many people (myself included) would consider having $50,000 or more in student loans and only earning $10 per hour an undue hardship. To the dismay of my Arizona clients, this is not often the case.
Proving Undue Hardship in Bankruptcy
Undue hardship in bankruptcy is very difficult to prove and, essentially, if you have a pulse and can earn money, it will, at the very least, be difficult to be able to include your student loan debt with your other debts that are discharged. However, if you are an individual with a disability that makes you unable to work, there is a better chance that your student loan debt can be discharged in the bankruptcy due to your student loan debt being an undue hardship. This is an area of law where a knowledgeable attorney is essential. Of course, if you are an Arizona resident, you need to consult with an experienced bankruptcy attorney who is licensed in the state of Arizona.
Student Loans in a Chapter 13
Although your student loans may not be dischargeable, a Chapter 13 bankruptcy may still offer a benefit to you if you are behind on your payments. A Chapter 13 bankruptcy can enable you to get caught up on your student loan payments over the course of your plan. This will allow you to be caught up and start fresh once your Chapter 13 plan is completed.
Contact Us to Learn More About Student Loans in Bankruptcy
If you are struggling with student debt, contact a Phoenix bankruptcy attorney to discuss your options. Call us at 480-845-0145 or send us an e-mail, and we will respond promptly. We look forward to meeting with you in a free consultation.